As a Resident Alien,will my heirs have a tax problem with an inheritance when I die?

As a resident alien you are entitled to the full unified credit which if you die this year will be $3.5 million, and therefore would pay no tax if your estate is smaller than that. Keep in mind that the credit equivalent amount drops to 1 million in 2011, and that Congress is likely to tinker with these amounts in the future. The bottom line is if you have significant assets you should see an estate tax attorney. If you are not already aware of this, if you have bank or other financial accounts outside of the United States you need to be Form TD F 90.22-1 Foreign Bank Account Report with the IRS every year. Failure to do this could result in a penalty equal to 50% of the balance in the account. I have included a link to my blog with more information on filing FBARs.